Wednesday, December 25, 2013

Pre Market Thoughts Thursday and Merry Christmas!

ES Five Day 30 minute chart

ES PRE MARKET THOUGHTS

This a sample of how I do my market preparation. The night before I form a hypothesis of how I will approach the day if the market gaps up or down. Preparing the night before takes out all the emotion of possibly considering a trade when the markets open. 

White Lines show the ES Price Levels and Trend Lines I will be paying attention to when considering a trade: Does not include overnight highs and lows.

  • 1818
  • 1810
  • 1806.50
  • 1800
  • 1795
  • 1786.50
  • 1782

Day Trading Pre Market Thoughts  

Trend Thoughts: Short term is bullish with bullish longer trend. Targeting pullbacks to the long side on this light volume. Dont fight the trend. 

S&P 500 Sectors: Strong Sectors: XLI, XLK, XLB    Lagging Sectors: XLU  Notes:

   
Special Day Thoughts, Trading Day of the Month: 
  • Day: 17th trading day shows no historical bias.
  • Month: December ES is historical the best month for longs. 
  • * info taken from Stock Market Almanac, provided more for fun than for a day trading bias 

Reports: None 

Gap Fill Thoughts: 
  • Up Gap: May consider the fade near 1834/35 area.  
  • Down Gap: Will consider fading a down gap near 1826.25 and 1824.75  Notes: If sitting at support or resistance check pre-market to see if price is considered support or Resistance.

Flat Open:  pass

Gap and Go Thoughts: 

  • Up Gap:Will not chase
  • Down Gap: Firmly under 1821 will consider  Notes: none

Long/Short Setups after 15-30 minutes

LONGS

Breakout location thoughts for a 15, 30 or 60 minute:  Will consider BO's or pullbacks on a down gap coming strong off support with room to the top of the channel. Will not chase any other breakouts, Will consider pullbacks to support.  Notes:
 

Fading Long thoughts: 
  • Major points to  target 1824.25,  1818.25 at the first test. 
  • Notes: Prefer a 5 point plus move into the location

SHORTS

Breakdown location thoughts for a 15, 30 or 60 minute: May consider with gap out of short term trend and holding the gap. Notes:    

Fading Short
thoughts:
 
  • Would consider a short fade at 1835
  •  Notes: Prefer a 5 point plus move into the location

Always mark Support/Resistance and confluence zones that could be used for targets, fading, pullbacks and breakout/breakdowns.



* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.

 

  


 


 

 

 


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Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE